The Leicester Mercury reports that Labour's directly elected Mayor of Leicester, Sir Peter Soulsby is to have a pay rise of £44,000. His pay will increase from £56,000 to £100,000 if the proposal is agreed at the next council meeting.

The report adds:

Sir Peter's deputy, Rory Palmer, is due to see his pay rise by £41,000, from £34,000 to £75,000, while the six assistant mayors are likely to see their annual income rise from £26,000 to £40,000. The remaining 47 city councillors are in line for a 20 per cent pay rise, too, with the basic councillor allowance set to increase from £10,000 to £12,000.

At first Sir Peter said that it would be wrong to "meddle" with the recommendations of the independent panel. But he has now said that the decision due to come before a council meeting next week should be postponed.

Cllr Ross Grant, for the Conservatives, told the Daily Mail that the panel had been "hand-picked" by Labour.

He adds:

"The pay proposals are disgraceful. The panel has been promoted as independent, but its members were appointed by Labour after the election, with no involvement for opposition parties.

"It has a representative of business, which needs to keep sweet with the council, and of a university, which needs co-operation with the council to get its expansion plans approved.’

Local Government Minister Bob Neill said: ‘

"True to form this shows you can’t trust Labour councils with public money. It’s scandalous that they are lining their pockets with bumper pay packets way out of step with the tough economic circumstances. These councillors are the ultimate champagne socialists."